DUBAI: Credit ratings agency Moody’s downgraded six Dubai-linked issuers on Tuesday after concluding that no “meaningful” government support would be provided for top firms like DP World or Emaar Properties.
“In recent statements the government has highlighted that it sees no legal obligation to support non-guaranteed debt of its GRI’s (government-related issuers),” said Philipp Lotter, senior vice president for Gulf corporates at Moody’s in Dubai.
“Taking into account the government’s most recent position, Moody’s no longer believes it appropriate to assume timely support.”
The companies downgraded included some of Dubai’s biggest, such as DP World, Dubai Electricity and Water Authority, Emaar Properties, Jebel Ali Free Zone, Dubai Holding Commercial Operations Group, and DIFC Investments.
The agency said it would continue to review the new ratings with the possibility of downgrading them further.
The repayment abilities of some government-related companies in Dubai have come into question following the standstill request by flagship holding company Dubai World on Nov. 25.
